Kelly: SWA costs too high

[texman]

If i were SWA labor, before GK comes asking for a paycut...maybe you should ask him the total cost of the "bags fly free" campaign. Total cost meaning: advertising plus lost revenue. Side note: I would miss the ads because they are very entertaining to watch!

Delta, UAL, and etc are making millions charging for bags. High value customers love it because they no longer have to subsidize the leisure travelers 4 checked bags full of snorkel gear going to Hawaii! If the SWA passengers complain...a new marketing campaign idea. "You are free to ship your bags on FedEx." Any guess what that would cost them?

Although entertaining, I don't see the "bags fly free" program dissuading the legacy carriers to discontinue their a la carte programs. If GK were smart, he would not come after labor in an effort to subsidize his marketing program. He would be better off focusing on revenue management. JMO!

We have actually gained over 1-2 % of the market share because of the bags fly free. I don't what the number trade off is though.

 

[General Lee]

Could this be the end of.......

How many hrs/mo does DAL 777/747 Capt fly?
I bet ours average 80-95hrs/mo.
Can't get much more productive.

I disagree with one thing Gary said. Customer service does make a HUGE difference. If a Capt took a 10%/trip paycut, that $18/trip will make NO difference if the planes are empty because a passenger was treated badly or we lost his bag.

Hopefully we can sustain our wages, but when you're wages are the highest, there's only one way to go. Let's hope the productivity goes up so other things don't go down. This is the only airline I've been at that I have not taken a pay cut.

Oh come on! You sound like the lead anchor on NBC Nightly News. The Delta and SWA pilots fly the same amount of hours. Some months the 777 guy flies more, some less (seasonal changes). But overall, when a 777 Captain flies 85 hours, and a SWA Captain flies 85 hours, it's the same. The main difference is that they 777 Captain can get 15 hours in ONE LEG (LAX to SYD), and you guys have to do 15 intra Texas legs to get the same.

The problem with the "productivity" remark is that overall as a group, there are more Delta pilots in training because there are multiple fleets. If a 767 Captain is awarded the 777, he may be out for 6 weeks doing the groundschool and sim, then awaiting IOE. SWA only has to do that once for initial IOE, then upgrade OE. The airlines don't have the same business plan, so you can't really compare them. And there are guys at Delta that only fly a couple different plane types in their career. He is just as "productive" as any SWA pilot, but nobody likes to bring that up.....



Bye Bye---General Lee

 

[General Lee]

We have actually gained over 1-2 % of the market share because of the bags fly free. I don't what the number trade off is though.

We gained $952 million last year. Also, your "Airtran" subsidiary still charges for bags, even though you guys own them. Why don't you guys just stop it all together???


Bye Bye---General Lee

 

[DeucesWild]

I think if you "listen between the lines", GK just asked for concessions.

 

[suupah]

If i were SWA labor, before GK comes asking for a paycut...maybe you should ask him the total cost of the "bags fly free" campaign. Total cost meaning: advertising plus lost revenue. Side note: I would miss the ads because they are very entertaining to watch!

Delta, UAL, and etc are making millions charging for bags. High value customers love it because they no longer have to subsidize the leisure travelers 4 checked bags full of snorkel gear going to Hawaii! If the SWA passengers complain...a new marketing campaign idea. "You are free to ship your bags on FedEx." Any guess what that would cost them?

Although entertaining, I don't see the "bags fly free" program dissuading the legacy carriers to discontinue their a la carte programs. If GK were smart, he would not come after labor in an effort to subsidize his marketing program. He would be better off focusing on revenue management. JMO!

It is only a matter of time before SW has to join the ancillary revenue party.

When the legacy retirements hit heavy and hard bringing in a huge contingent of pilots at the bottom of the scale, SWA will really have to adjust or bust.

It's a shame, a real shame and i hope We are all wrong but i dont' think we are.

 

[Flyer1015]

deleted

 

[Flyer1015]

If i were SWA labor, before GK comes asking for a paycut...maybe you should ask him the total cost of the "bags fly free" campaign. Total cost meaning: advertising plus lost revenue. Side note: I would miss the ads because they are very entertaining to watch!

Delta, UAL, and etc are making millions charging for bags. High value customers love it because they no longer have to subsidize the leisure travelers 4 checked bags full of snorkel gear going to Hawaii! If the SWA passengers complain...a new marketing campaign idea. "You are free to ship your bags on FedEx." Any guess what that would cost them?

Although entertaining, I don't see the "bags fly free" program dissuading the legacy carriers to discontinue their a la carte programs. If GK were smart, he would not come after labor in an effort to subsidize his marketing program. He would be better off focusing on revenue management. JMO!

Bags fly free is a misnomer. The passengers all pay, collectively, on SWA. For any city routing, I've always found Spirit to be cheaper, because they take out snacks/drinks/bags out of the base fare. SWA is one of the most expensive airlines for booking today. There were times SWA had fares of 49-69 one way but those are gone.

 

[LandGreen]

We have actually gained over 1-2 % of the market share because of the bags fly free. I don't what the number trade off is though.

hmmm...you may be right...but i gotta see an independent source to believe it. certainly wouldn't believe it if it came on SWA letterhead! LOL!

hey, I am on your side. Did you not notice that your fearless leader just began a campaign here: Management of Labor Expectations 101. Next step is the paycut to remain competitive with the "new" legacy carriers.

 

[BillJBrake]

Bags fly free is a misnomer. The passengers all pay, collectively, on SWA. For any city routing, I've always found Spirit to be cheaper, because they take out snacks/drinks/bags out of the base fare. SWA is one of the most expensive airlines for booking today. There were times SWA had fares of 49-69 one way but those are gone.

Yup. Rarely is SWA the cheapest on most city parings I've looked at. One of the things (in my opinion) is their "cult-like" following. By only being able to book/view flights at SWA.com, often people don't even see the competitive fares. Of the SWA "die-hards" i know, most of them just go to SWA.com, book the flight, then when they claim how much $ it was "waah I paid $500 to get to Vegas" I ask "did you look at USAir or Delta or UAL" they'll say "no, I just went on SWA.com, they're always the cheapest. plus I don't have to pay for bags" then I'll show them a far on DAL for $210 ($250 with bag fees!). Ah well.

On another note, who didn't see this coming? This industry is so cyclical, you can't have one of the highest paid pilot groups, flying a plane with 1/2-1/3 the capacity of the top end planes at other airlines, with lots of CSR, no bag fees, etc, and expect you'll stay ahead of the competitors.

Look at PHL, seems like USAir gave SWA a good 'ol whoopin there, or are the massive reductions there just coincidence?

 

[nordo_2]

The consumer only cares about the cheapest ticket possible. There is no brand loyalty.

All airlines are one commodity. Airline pilots have almost no direct customer contact.